DUBAI: Royal Dutch Shell on Wednesday said it has completed the divestment of its 50 percent ownership in a petrochemicals joint venture in Saudi Arabia.
Saudi Basic Industries Corp. (SABIC) acquired the Anglo-Dutch energy major’s interest in SADAF, the petrochemical venture with Shell Arabia, for $820 million following anti-trust filings in relevant countries and regulatory approval from the kingdom, the company said.
“This step will allow Shell to focus its downstream activities and make selective investments to support the growth of its global chemicals business,” Shell said in a statement.
“Completion of this deal shows the clear momentum behind Shell’s global, value-driven $30 billion divestment program,” Shell said, while adding that the transaction did not affect the company’s other interests in Saudi Arabia.
Shell jointly operates with Saudi Aramco a crude oil refinery in Jubail.
SADAF was established in 1980 and operates six petrochemical plants with total annual output of over 4 million tons of chemicals including ethylene, methyl tert-butyl ether and styrene.
SABIC and Shell in 2014 decided against the expansion of SADAF’s operations, which would have polyols, propylene oxide and styrene monomer to the production line, after discouraging results feasibility studies.
Shell completes divestment in Saudi petrochemicals joint venture
Shell completes divestment in Saudi petrochemicals joint venture
Closing Bell: Saudi equities continue 4-day upward trend
RIYADH: Saudi equities closed higher on Wednesday, with the Tadawul All Share Index rising 51.52 points, or 0.47 percent, to finish at 10,945.15.
Trading activity was robust, with 373.9 million shares exchanged and total turnover reaching SR6.81 billion.
The MT30 Index also ended the session in positive territory, advancing 11.93 points, or 0.82 percent, to 1,472.82, while the Nomu Parallel Market Index declined 116.82 points, or 0.49 percent, to 23,551.47, reflecting continued volatility in the parallel market.
The main market saw 90 gainers against 171 decliners, indicating selective buying.
On the upside, Al Kathiri Holding Co. led gainers, closing at SR2.18, up SR0.12, or 5.83 percent. Wafrah for Industry and Development Co. advanced to SR23, gaining SR0.99, or 4.5 percent, while Al Ramz Real Estate Co. rose 4.35 percent to close at SR60.
SABIC Agri-Nutrients Co. added 4.21 percent to SR118.70, and Al Jouf Agricultural Development Co. climbed 4.12 percent to SR45.
Meanwhile, losses were led by Saudi Industrial Export Co., which fell 9.73 percent to SR2.69. United Cooperative Assurance Co. declined 5.08 percent to SR3.74, while Thimar Development Holding Co. dropped 4.54 percent to SR35.30.
Abdullah Saad Mohammed Abo Moati for Bookstores Co. retreated 4.15 percent to SR48.50, and Gulf Union Alahlia Cooperative Insurance Co. slipped 3.96 percent to SR10.44.
On the announcement front, Saudi National Bank announced its intention to issue US dollar-denominated Additional Tier 1 capital notes under its existing international capital programe, with the final size and terms to be determined subject to market conditions and regulatory approvals.
The planned issuance aims to strengthen Tier 1 capital and support the bank’s broader financial and strategic objectives.
The stock closed at SR42.70, gaining SR0.70, or 1.67 percent, reflecting positive investor reaction to the capital management move.
Separately, Almasane Alkobra Mining Co. said its board approved the establishment of a wholly owned simplified joint stock company to provide drilling, exploration and related support services, with a share capital of SR100 million and headquarters in Najran, subject to regulatory approvals.
The new subsidiary aligns with the company’s strategy to enhance operational efficiency and expand its role in the Kingdom’s mining sector.
Shares of Almasane Alkobra Mining closed at SR98.70, up SR0.30, or 0.3 percent, by the end of the session.
